The Grounds Real Estate Development AG reported a group revenue of EUR 10.0 million in the 2025 financial year. This figure falls precisely within the target corridor forecasted by the company, which ranged from EUR 9.0 million to EUR 11.0 million. The achievement of the revenue target highlights operational stability regarding income, although other key figures require a differentiated perspective.
In contrast, the group EBIT (Earnings Before Interest and Taxes) for the reporting year 2025 amounted to minus EUR 3.0 million. This result fell short of the company's original forecast, which had anticipated a balanced outcome. The deviation from the forecasted value is attributable to specific factors that necessitated an adjustment of financial expectations.
Factors for EBIT Deviation in Financial Year 2025
The main reasons for falling short of the EBIT target are twofold. On the one hand, write-downs totalling EUR 2.1 million on inventories were essential. These adjustments became necessary due to market developments characterised by increased costs and simultaneously decreased prices in the relevant real estate segment. Such write-downs reflect a conservative valuation of the stock and account for the current market situation.
On the other hand, the realisation of asset management fees amounting to EUR 1.2 million from the 2025 financial year was postponed to the 2026 financial year. This temporal shift of income, while not lost, negatively impacted the period's result for 2025 and significantly contributed to missing the EBIT target.
Development in the First Half of 2026 and Outlook
A positive development is evident in the figures for the first half of 2026. During this period, The Grounds Real Estate Development AG recorded a group revenue of EUR 13.1 million. Group EBIT reached EUR 1.9 million in the same period. This significant improvement compared to the previous year resulted from various operational successes.
- —Income from the sale of properties contributed EUR 1.1 million to the positive revenue and EBIT development.
- —Service income amounted to EUR 1.98 million, which also had a significant share in the improvement.
For the entire 2026 financial year, the company forecasts a group revenue of between EUR 20.0 million and EUR 24.0 million. The anticipated group EBIT is expected to be in the range of EUR 1.0 million to EUR 2.0 million. These forecasts are primarily shaped by individual sales in the Fahrland-Werder project and by continued service business. The management expects these segments to be the main drivers for the targeted growth and earnings improvement in the current year.
